On May 31, 2025, the government of Pakistan announced an increase of Rs 1 per litre in petrol prices, raising the cost from Rs 252.63 to Rs 253.63, effective immediately. Diesel prices have remained unchanged at Rs 254.64 per litre, according to a notification from the Ministry of Finance.
The recent increase in petrol prices in Pakistan comes after a period of stability. On May 16, petrol prices remained unchanged at Rs 252.63 per litre, while diesel prices were reduced by Rs 2, bringing the cost to Rs 254.64 per litre. Previously, on April 30, petrol and diesel experienced a Rs 2 per litre decrease, setting petrol at Rs 252.63 and diesel at Rs 256.64. The government’s decision to raise petrol prices now reflects the fluctuations in global oil markets.
On April 15, Prime Minister Shehbaz Sharif stated that declines in global oil prices would be redirected to fund development projects instead of leading to further fuel price cuts. He emphasised the importance of public welfare through infrastructure improvements, as reported by Geo News. The fuel policy under Shehbaz Sharif aims to balance providing relief to consumers and fostering economic growth. However, the increase in fuel rates expected in 2025 may strain household budgets.
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Though modest, the Pakistan petrol price adjustment could raise commuting and goods transport costs, affecting inflation. Social media reactions highlight public frustration, with one X user stating, “Another rupee up, another hit to our wallets.” The unchanged diesel price offers some relief for commercial transport, but the stability of the diesel price in Pakistan may not offset broader economic pressures.
